Trend Finder

The Trend Finder strategy combines a moving average and the Parabolic SAR to capitalise on daily and weekly trends.


Tradeworks features
This strategy showcases your ability to easily create strategies with multiple entry rules. We are buying if the price is above both the Moving Average and the Parabolic SAR but the actual time we open the position is when the price crosses one of the indicators. Therefore, we have two bull-signal-rules and two bear-signal-rules.


Strategy Description
This strategy seeks to capture larger directional market movements - or trends. Once the price is above both the EMA and the PSAR the strategy will open a long position and similarly when the price is below it will open a short position. The indicators are calculated on the H1 and as a result, the strategy can be expected to trade 5-10 positions a day. To allow the strategy to take on a bit more risk we have added throttling on the four signal rules, which means that after a rule has triggered, it will be ignored for a given number of minutes before re-activating. In this case 30 minutes later. As a result, if the market continues the trend the strategy will likely open an additional second or third position. The strategy has a tight SL at 30 pips and take profit level set at 75 pips. Maximum Exposure is set at 5%.


Indicator description: Moving Average, Exponential
The Moving Average calculates the average value of the last x number of bars. You can chose which values on the bar to use (Open, high, low, close, or a combination of them). In this template strategy we calculate the average exponentially, which means we contribute higher weight to the most recent bars and less weight to the more distant bars. In this strategy we use a one hour - 20 period EMA on 'Typical' price values.


Indicator: Parabolic SAR
The Parabolic SAR (also known as Stop and Reverse) is a great indicator for capturing the short term swings of a market. As its name suggests, it is a good indicator for determining when to stop your current position, and reverse to the opposite direction. In this strategy we use a one hour - 0.06 step PSAR with a 0.2 maximum.

 

 

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